Four US states could become home to 28 GW of offshore wind capacity if areas in federal waters are auctioned for commercial leases this and next year, according to a new study from Wood Mackenzie.
The research group is basing its calculations on existing activities and policy assumptions for future offshore wind development. It said that auctions for 2 million acres of federal waters in the New York Bight, including also New Jersey waters, as well as off California and the Carolinas, could support the above-mentioned capacity and generate USD 1.2 billion (EUR 1.01bn) in US Treasury revenue.
Furthermore, some areas in the Gulf of Maine and off California could be auctioned in 2022 and generate an additional USD 500 million in revenue.
The Bureau of Ocean Energy Management (BOEM) is the body in charge of offshore wind lease auctions. Under the Obama administration it held six competitive lease sales in the Atlantic Ocean and awarded 11 offshore commercial leases. The Trump administration completed two competitive lease sales off North Carolina and Massachusetts, identified during Obama, and then postponed indefinitely the planned New York Bight lease sale, the Center for American Progress summarised recently.
The Wood Mackenzie study has been commissioned by four energy industry groups, namely the American Wind Energy Association (AWEA), National Ocean Industries Association (NOIA), New York Offshore Wind Alliance (NYOWA) and the Special Initiative on Offshore Wind (SIOW) at the University of Delaware.
“SIOW urges decision-makers in the Department of the Interior and the Bureau of Ocean Energy Management to heed the findings of this new analysis and act quickly to unlock the multi-faceted potential of U.S. offshore wind development,” said Nancy Sopko, executive director at SIOW.
The research further estimates that the total investment in the country’s offshore wind industry will reach USD 17 billion by 2025, USD 108 billion by 2030 and USD 166 billion by 2035. The latter figure reflects USD 42 billion in capital investment in turbine production and the supply chain, USD 107 billion in the construction sector and USD billion in transportation and ports.
When it comes to operations and maintenance (O&M), the annual capital investment is seen reaching USD 2.4 billion in 2035.
(USD 1.0 = EUR 0.846)
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A picture from Cathie Associates visit to the US’ first commercial offshore wind farm; Block Island.
